Course File

Name of the Faculty Sathyanarayana K

Designation Assistant Professor
Email Sathyanarayana.k@[Link]

Subject Code PM102.2C

Subject Name Financial Management

Credits 04

AY /Semester/Section 2021-22 / Second Semester/B & D

1. INTRODUCTION OF THE COURSE

Finance is the lifeblood of business organization. It needs to meet the
requirement of the business concern. Each and every business concern must
maintain adequate amount of finance for their smooth running of the business
concern and also maintain the business carefully to achieve the goal of the
business concern. The business goal can be achieved only with the help of
effective management of finance. We can’t neglect the importance of finance at
any time and at any situation

Financial managers are responsible for the financial health of an organization.

They produce financial reports, direct investment activities, and develop
strategies and plans for the long-term financial goals of their
organization. Financial managers typically help management make financial
decisions.

This course is designed with the intention and purpose of moulding the students
into well-informed professionals in the complex arena of Financial Management.
2. COURSE OBJECTIVES
 To enable the students to understand the concepts of corporate finance and
in turn make them comfortable and easy in understanding of financial
management.
 To offer the students relevant and systematic knowledge of financial
management that can be applied in practice while making financial decisions
and resolving financial problems

PBS/2021-22/ES/COURSE FILE 1
3. COURSE OUTCOMES (COs)
On successful completion of the course the learner will be able to:
COGNITIVE
CO COURSE OUTCOMES
ABILITIES
Describe managing corporate finance and emerging trends in
CO1 Understand
financial management
Estimate the future value and present value of cash flows for
CO2 Evaluate
financing decisions
CO3 Analyse Examine Cost of Capital, Leverage and Capital Structure
Analyse investing & project appraisal techniques to select the
CO4 Analyse
best
CO5 Evaluate Evaluate Working Capital Requirements
CO6 Understand Explain dividend decisions at different circumstances

4. PEDAGOGY
Comprises lectures, surprise quizzes/class test and class exercises. Students are
required to complete one individual project so that they can learn the application of
concepts covered in class.

5. AUGMENTED CURRICULUM
Mini Project: Students will analyse the dividends paid, Bonus Issues and Stock
Split of companies listed on Indian Stock Exchange
6. EVALUATION SUMMARY (30 Marks):
S.
Component Marks
No.
1 Mid-Term Examination 10
2 Assignments/Case Study/Class Test/Quiz 10
3 Mini Project/Class Presentation 10
Total 30

7. LIST OF RECOMMENDED TEXT BOOKS

Sl.
Name of the Book Author(s) Publisher Edition
No.
Taxman Allied
1 R1:Financial management Kishore M Ravi Latest
Services
Vikas
2 R2:Financial Management I M Pandey Publishing Latest
House
Rajiv Srivastava, Oxford Higher
3 R3:Financial Management Latest
Anil Misra Education

PBS/2021-22/ES/COURSE FILE 2
8. LIST OF REFERENCE TEXT BOOKS

S.
Name of the Book Author(s) Publisher Edition
No.
1 R4:Fundamentals of Brigham Cengage Latest
Financial Management Learning
2 R5:Financial Management Prasanna McGraw Hill Latest
Chandra Education
3 R6: Financial Decision Hampton, Prentice Hall of Latest
Making John India
4 R7: Investment Analysis Reilly & Brown Cengage Latest
and Portfolio Management

9. LIST OF URLs TO BE REFERRED

S. How does it augment the

Name of the URL
No. Teaching-Learning Process

[Link] To get corporate action data of stocks

1 /stockpricequote/cigarettes/itc/ITC listed on Indian stock exchange

[Link] To understand latest news on

2 /topic/financial-management financial management

PBS/2021-22/ES/COURSE FILE 3
10. SESSION PLAN
Session Pre-Class Mapped
M. No. Description Methodology Cognitive Level
No Reading CO

1 Introduction
Financial Management: Meaning and Objectives, Functions of Lecturing Understand
EMERGING TRENDS IN FINANACIAL

2 R4 Pg 16-22 CO1
1 : FINANCIAL MANAGEMENT AND

Financial Management

3 Agency Problem, Emerging role of finance manager in India R4 Pg 22-26 Lecturing CO1 Understand
MANAGEMENT

4 Indian Financial System R4 Pg 2-10 Lecturing CO1 Understand

R7: Pg 96 - Lecturing Understand

5 Financial Markets CO1
100

6 Emerging trends in finance: Digital Transformation Handouts Lecturing CO1 Understand

7 Digital Finance and Digital Money Handouts Lecturing CO1 Understand

8 Fintech- Crypto currency, Focus on user experience. Handouts Lecturing CO1 Understand

Time Value Concept- Compounding - Future value of a R5 Pg 139- Lecturing/ Understand

9 CO1
2: TIME VALUE OF MONEY AND

Present value 145 Problem solving

R5 Pg 146- Lecturing/ Evaluate
10 Future value of an Annuity and Annuity Due CO2
RATE OF INTEREST

150 Problem solving

R5 Pg 151- Lecturing/ Evaluate
11 Discounting- Present value of a Future Value CO2
154 Problem solving
Present Value of an Annuity and Annuity Due, Rate of R5 Pg 154- Lecturing/ Evaluate
12 CO2
Interest 158 Problem solving
R5 Pg 154- Lecturing/ Evaluate
13 Problems on Future Value and Present Value CO2
158 Problem solving

Inclusive and Exclusive- Equated Annual Instalments R5 Pg 158- Lecturing/ Evaluate

14 CO2
160 Problem solving

PBS/2021-22/ES/COURSE FILE 4
 R5 Pg463- Understand
15 Sources of Funds: Long Term and Short Term-Capitalisation Lecturing CO1
465
Earnings Theory and Cost Theory of Capitalisation; Over- R5 Pg463-
16 Lecturing CO1 Understand
Capitalisation; Under-Capitalisation 465

R5 Pg379- Lecturing/ Analyse

17 Cost of Capital- Cost of Debentures CO3
381 Problem solving
Lecturing/ Analyse
18 Cost of Debentures - Problems Handouts CO3
3: CAPITAL STRUCTURE DECISIONS

Problem solving
R5 Pg379- Lecturing/ Analyse
19 Cost of Preference Capital CO3
381 Problem solving
Lecturing/ Analyse
20 Cost of Preference Capital - Problems Handouts CO3
Problem solving
R5 Pg379- Lecturing/ Analyse
21 Cost of Equity- CAPM CO3
381 Problem solving
Lecturing/ Analyse
22 Cost of Equity - Problems Handouts CO3
Problem solving
Cost of internally generated funds, Weighted Average Cost of R5 Pg379- Lecturing/
23 CO3 Analyse
Capital 381 Problem solving
R5 Pg476- Lecturing/
24 Leverages – Operating Leverage CO3 Analyse
478 Problem solving
R5 Pg476- Lecturing/ CO3 Analyse
25 Financial Leverage and Combined Leverage
478 Problem solving
EBIT –EPS Analysis, Point of Indifference, Financial Break- R5 Pg476- Lecturing/ CO3 Analyse
26
even Point 478 Problem solving
Risk and Return in Financial Management – Risk Associated R2 Pg158- CO1 Understand
27 Lecturing
with Project Appraisal 162
Risk Associated with Project Appraisal and its return Meaning
R2 Pg163- Lecturing/ CO4 Analyse
28 of Capital Budgeting, Significance, Principles Capital
166 Problem solving
BUDGETING
DECISIONS
4: CAPITAL

budgeting proposals
R2 Pg163- Lecturing/ CO4 Analyse
29 Methods of appraising proposals: Payback period
166 Problem solving
R2 Pg166- Lecturing/ CO4 Analyse
30 Methods of appraising proposals: ARR,
169 Problem solving

PBS/2021-22/ES/COURSE FILE 5
 R2 Pg170- Lecturing/ CO4 Analyse
31 Methods of appraising proposals: IRR
174 Problem solving
R2 Pg170- Lecturing/ Analyse
32 Methods of appraising proposals: NPV, Profitability Index CO4
174 Problem solving
R2 Pg170- Lecturing/ Analyse
33 Methods of appraising proposals: Profitability Index CO4
174 Problem solving
Concept of working capital, factors determining working R1 Pg166 – Understand
34 Lecturing CO1
CAPITAL DECISIONS

capital, Sources of working capital 174

5: WORKING

R1 Pg166 – Lecturing/ Evaluate

35 Estimating working capital needs CO5
174 Problem solving
R1 Pg220 – Lecturing/ Evaluate
36 Receivables Management CO5
222 Problem solving
R1 Pg220 – Lecturing/ Evaluate
37 Receivables Management - Problems CO5
222 Problem solving
R1 Pg354 – Lecturing/ Understand
38 Concept of Dividend- Walters Approach- Gorden’s Approach CO6
6: DIVIDEND
DECISIONS

356 Problem solving

R1 Pg360 – Lecturing/ Understand
39 MM Approach- Impact of dividend decisions on Market Price CO6
363 Problem solving
40 Revision

PBS/2021-22/ES/COURSE FILE 6
 11. COs & POs MAPPING FRAMEWORK
POs →
PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8
COs ↓
CO1 2 1
CO2 1 3
CO3 1 2
CO4 1 3 1
CO5 2 1 1
CO6 1 2 1

12. PROGRAMME EDUCATIONAL OBJECTIVES

PEO-1: Engage in life-long learning
PEO-2: Contribute to decision making in every sphere of professional and
personal life.
PEO-3: Provide innovative and sustainable solutions to business problems
PEO-4: Practice ethics and professionalism at work
PEO-5: Contribute to societal good

13. PROGRAMME OUTCOMES

By the end of completing 2-year full time Masters Programme in Management
Science, Graduates of MBA will be able to:
PO1: Communicate effectively and display inter-personal skills [S]
PO2: Demonstrate value-based leadership and teamwork for the attainment of
personal and organizational goals [S]
PO3: Apply relevant conceptual and analytical frameworks for effective
decision-making [K3]
PO4: Analyse the environment in which businesses operate [K4]
PO5: Practice sustainable and ethical business methods [A]
PO6: Demonstrate social responsibility to promote the well-being of society and
the environment [A]
PO7: Inculcate an understanding of Intrapreneurship to prepare
entrepreneurial managers [K2]
PO8: Equip with the ability to assess globally significant trends for working out
appropriate strategies [K5]

PBS/2021-22/ES/COURSE FILE 7